Medicaid still short on cash as new budget year begins

INDIANAPOLIS (WISH) — The state’s top money managers on Tuesday said they’re still working under the assumption the Medicaid fund is low but the numbers could change.

Indiana’s 2024 budget year ended on June 30. Tuesday’s report contains the final numbers for the state’s coffers at the end of that period. The Office of Management and Budget and State Comptroller Elise Nieshalla reported a budget reserve of a little more than $2.5 billion, of which a little more than $1 billion was in the state’s emergency fund.

Budget officials said the 2024 closeout report is noteworthy because they believe it marks a return to pre-pandemic revenue and expense levels. They said their calculations contain no significant pandemic-related impacts such as stimulus spending or changes in sales taxes due to online shopping for durable goods. Moreover, they said their original revenue estimate came within 0.1% of the final total for the second year in a row and the state kept to its goal of having reserves equal to roughly 11-12% of the total budget.

“What I want to convey from our seats is confidence that fiscal responsibility is paramount to the state of Indiana and not only (state budget officials) but the governor and the General Assembly take this seriously,” OMB Director Cris John...